Under what agreement will a Cinnaholic franchisee operate each Bakery to be developed under the Development Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
You will operate each Bakery to be developed under the Development Agreement under a separate Franchise Agreement. Upon establishing each additional outlet under the Development Agreement, a developer may be required to sign a then-current Franchise Agreement, which may differ from the current Franchise Agreement included within this FDD. The Franchise Agreement will grant you a protected territory (the "Franchise Territory"), the size and scope of which will be determined on a case-by-case basis by considering the population, traffic flow, presence of businesses, location of competitors (including other CINNAHOLIC® franchisees), demographics and other market conditions surrounding the location of the Bakery. The Franchise Territory may not be unilaterally altered, and the continuation of the Franchise Territory during the term of the Franchise Agreement does not depend on a certain sales or revenue volume or market penetration. We may not operate, or permit any other person to operate, a CINNAHOLIC® Bakery in the Franchise Territory during the term of the Franchise Agreement; although, we may distribute products, or permit others to distribute products, which are the same or similar to those offered by CINNAHOLIC® Bakeries, whether under the Marks or under other trademarks, trade names, service marks, logos or other commercial symbols and through any channel of distribution or method other than a CINNAHOLIC® Bakery within the Franchise Territory, including sales through catalogs, e-commerce, mail order, kiosks, mass merchandise, grocery stores, supermarkets, mom & pops, gourmet shops, warehouse clubs, and convenience and other stores, even if you sell these products at your Bakery. We may also operate or permit others to operate CINNAHOLIC® bakeries at non-traditional locations within your Franchise Territory such as sports stadiums, arenas, universities and schools, hospitals, airports, shopping malls, and the like.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee will operate each bakery developed under the Development Agreement under a separate Franchise Agreement. Upon establishing each additional outlet under the Development Agreement, the developer may be required to sign a then-current Franchise Agreement, which may differ from the current Franchise Agreement included within the FDD.
The Franchise Agreement grants the franchisee a protected territory, the size and scope of which is determined on a case-by-case basis. Factors considered include population, traffic flow, presence of businesses, location of competitors (including other Cinnaholic franchisees), demographics, and other market conditions surrounding the bakery's location. The Franchise Territory cannot be unilaterally altered, and its continuation during the term of the Franchise Agreement does not depend on a certain sales or revenue volume or market penetration.
Cinnaholic may not operate, or permit any other person to operate, a Cinnaholic Bakery in the Franchise Territory during the term of the Franchise Agreement. However, Cinnaholic may distribute products, or permit others to distribute products, which are the same or similar to those offered by Cinnaholic Bakeries, through any channel of distribution other than a Cinnaholic Bakery within the Franchise Territory, including sales through catalogs, e-commerce, mail order, kiosks, mass merchandise, grocery stores, supermarkets, and other stores, even if the franchisee sells these products at their Bakery. Cinnaholic may also operate or permit others to operate Cinnaholic bakeries at non-traditional locations within the Franchise Territory such as sports stadiums, arenas, universities and schools, hospitals, airports, and shopping malls.